General Mills files for arbitration with French dairy company that owns Yoplait brand
By APFriday, September 10, 2010
General Mills files for arbitration over Yoplait
MINNEAPOLIS — General Mills Inc. has filed for arbitration over a contract issue with the French company from which it has licensed the Yoplait brand for more than three decades.
The food maker said in a regulatory filing that dairy company Sodima sent it a letter on Sept. 3 saying it wanted to end their agreement in two years.
On Tuesday, General Mills filed a petition for arbitration. The company said its contract agreement allows Sodima to end the deal only if General Mills breaches the contract. General Mills said Sodima is not alleging a contract breach, so it is seeking arbitration to enforce the agreement. General Mills said discussions are ongoing and the company is hopeful for a resolution.
“We intend to continue to use the Yoplait trademark under the terms of our agreement, and we will vigorously defend and enforce our exclusive rights to use the Yoplait mark in the United States,” General Mills said in a filing with the Securities and Exchange Commission Friday.
Terms of the current deal were not disclosed.
Shares of General Mills rose 54 cents to close at $37.19 on Friday.
